Overview
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This free course, Financial methods in environmental decisions, begins by introducing some of the tools that can be used to assess the benefits of investment decisions, including ways of assessing the ‘external costs’ – the wider costs and benefits to society as a whole – of environmental decisions.
Syllabus
- Introduction
- Learning outcomes
- 1 Financial assessment techniques
- 1 Financial assessment techniques
- 1.1 Cash flow
- Cost
- Benefit
- 1.2 Cash flow statement
- 1.3 Financial appraisal of projects
- Payback period
- Average gross rate of return
- Average net annual rate of return
- Discounted cash flow methods
- 2 External costs
- 2 External costs
- 2.1 Determining external costs
- 2.2 External cost assessment of the European incineration directive
- 2.3 Using external costs
- Command and control
- Economic instruments
- Carbon taxes
- Conclusion
- Glossary
- References
- Acknowledgements
Tags
Reviews
5.0 rating, based on 1 Class Central review
4.5 rating at OpenLearn based on 2 ratings
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The exploration of external costs and the methodologies for their valuation, particularly the ExternE project, provided a robust framework for understanding market failures and policy instruments like carbon taxes. The estimated time for completion was accurate, culminating in a certificate that duly recognizes the effort. This knowledge equips one to articulate the business case for sustainability initiatives using standard financial metrics while also advocating for the internalization of societal costs, a competency increasingly valuable to employers navigating the complexities of corporate social responsibility and environmental regulation.